Repair Delays and POS Outages Hamper Gas Station Retailer

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Results

The Kitestring team helped this regional gas station chain see immediate results, while setting them up for long term success.

  • Reduced lost revenue with fewer service outages
  • Facilitated contract negotiations to ensure alignment for future growth
  • Established vendor incentives to reduce costs
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Introduction

A regional gas station chain was hamstrung by a POS system that lacked timely support during hardware breakdowns. Kitestring worked with the retailer to find a more flexible service partner who could better meet their needs now and into the future.

Problem Statement

Many of the chain’s locations lack effective service when hardware issues occur with its retail system. Core challenges included: 

  1. Most stores across 26 states function with a single POS device. Hardware issues cause stores to shut down while waiting for a support technician. 
  2. Only one company warehoused parts for the retailer’s registers, but maintenance in the field was conducted by more than 30 vendors.
  3. Availability of technicians and long-distance shipping of parts causes further delays when registers fail.
  4. Difficulty in acquiring timely POS services and parts limits the company’s ability to explore further expansion and grow their business.

Solution

Kitestring defined all the processes the company was dissatisfied with to develop a clear vision for a service partner who could meet their needs. Once the company decided on a vendor, we served as their ally for negotiations to secure the right protections in their contracts.

Methodology

  • Identifying Support Requirements
    • Jobs-to-be-done framework: Identify all processes needing improvement, using stakeholder interviews to understand pain points and success criteria. 
    • Selection Study: Draft requirements for vendors to provide warehousing and field support.
      • Scoring System: Evaluate potential vendors for their ability to meet criteria and create presentation requirements for prospective partners.
      • Evaluation and Recommendation: Provide analysis of results with our specialized insights to narrow the list of vendors.

 

  • Applying Industry Experience to Streamline Negotiations 
    • Align Processes with Systems: Secure a fresh start for the retailer by disregarding old contract frameworks to define new service boundaries.
    • Establish KPIs: Connect contract terms with appropriate data to measure outputs and generate reports on vendor performance.
    • Ensure Alignment Through Engagement: Conduct pricing exercises with retailer’s procurement team to streamline negotiations.
    • Presentation Preparation: With the right terms secured to support the retailer’s future, we worked with stakeholders to present the new vendor to the board.

Key Results

  1. Timely POS Service: The retailer identified a new vendor to fully satisfy their requirements for hardware service while offering support for growth moving forward. 
  2. Faster Parts Delivery: Instead of relying on a single warehouse, the new vendor has multiple locations around the country to deliver needed parts faster
  3. Soft Cost Savings and Less Downtime for Outages: Contract terms encourage the vendor to work faster to reduce their costs as well as those of the retailer.
  4. Rapid Transition Date: Shift to new POS service provider is on track to exceed the retailer’s initial target date for implementation.

Conclusion

Through its work with Kitestring, the retailer has the support it needs to reduce outages at its locations and keep their business running. Though the transition constituted an investment, the company is already seeing it pay off without any interruption in support to its stores.

What can Kitestring do to help secure a brighter future for your business? Let’s talk about it.